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    Nicholas Tse Endorsed XTEP'S Annual Profit Of 400 Million, Eliminating Hundreds Of Inefficient Stores.

    2018/8/30 13:45:00 55

    Nicholas TseXTEPChildrenEarnings

      

    XTEP Holdings Limited

    (01368.HK) released the interim results report of 2018.


    The report shows that in the first half of 2018, XTEP's revenue rose 18.1% to 2 billion 730 million yuan, net profit rose 20.9% to 375 million yuan, gross margin was 43.7%.

    XTEP said the increase was mainly due to the cold weather in late 2017 and early 2018.

    clothing

    The contribution of product revenue has increased. In addition, the contribution of e-commerce channels has increased, accounting for 20% of the group's total revenue during the period.

    In the same period of last year's performance, XTEP's performance decline was particularly conspicuous in the context of rising profits and profits of all sporting goods brands.

    In the first half of its performance, XTEP said that its net profit fell by 18.4% as a result of the promotion of advertising and promotion costs in the first half of 2017 to 12.2% of its revenue. At the same time, the group's revenue dropped to 2 billion 310 million 800 thousand yuan due to the reorganization of XTEP's children's department.

    It is reported that

    XTEP

    By the end of 2017, three years of strategic change will be completed. The sales channel has basically been flatten to a more optimized mode. About 60% of the shops are directly operated by XTEP's exclusive agent, while the rest are operated by franchisees, effectively controlling XTEP's entire retail channel.

    Among them,

    XTEP

    In 2016 and 2017, the children's Department underwent a major reorganization. It has redeployed and integrated XTEP's adult sector resources. As of December 31, 2017, the XTEP children's sales point maintained 250.

    In response to this, XTEP group said in the previous announcement that as XTEP's children's Department contributed little to the group's contribution, it began to cautiously expand the children's department in 2018.

    Meanwhile, at the beginning of this year,

    XTEP shoes

    Being rejected as "not a fine man will wear shoes", in order to change the impression of rustic brand, XTEP has not only become the "official designated sports brand" to guide the young trend of "new rap" program in China.

    fashion

    "Sports" positioning, in June this year, also signed the seven NEXT of Lok Wah.

    In the next two years, XTEP also plans to open up to 10 XTEP flagship experience centers, which are directly operated.

    As of the end of June, XTEP has operated about 6035 stores nationwide, with 65% of the total new stores, and only a limited number of planned net stores. The growth of the total retail area is faster than that of the shops because of the larger area of the new store.

    This year's plan has increased by 165 to 265 to 6200 to 6300. Ding Shuibo, the group chairman, said that it would close about 100 inefficient stores and open two or three cities and shopping centers.

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